Luxury sales in the Middle East have fallen sharply, particularly in the United Arab Emirates (UAE), as the Iran conflict disrupts one of the industry’s key growth regions, Reuters reported.
In March, sales at Dubai’s Mall of the Emirates dropped by 30% to 50% compared with the same period last year, while foot traffic declined by 15%. At the larger Dubai Mall, visitor numbers fell by around 50%, suggesting an even steeper sales downturn. In Abu Dhabi, performance was more resilient but still showed a roughly 10% decline at the Galleria mall.
The slowdown reflects the impact of ongoing regional instability on a sector already facing weaker global growth. The conflict, which began with U.S. and Israeli strikes on Iran in late February and led to Iranian missile and drone attacks on the UAE, has undermined travel, consumer confidence and the country’s reputation as a safe haven.
The Middle East, which accounts for about 5% of global luxury consumption, had been one of the industry’s fastest-growing markets in recent years, delivering double-digit revenue growth. Analysts warn that recovery may take months even if the conflict eases, while broader economic pressures could further weigh on demand, with a more significant effect on luxury brands’ earnings over time.
